“Jiuzi’s Bold Crypto Shift: $1B Treasury Strategy and the New Wave of Corporate Digital Asset Adoption”

Main Points ：

• Jiuzi Holdings’ board has approved a strategy to allocate up to US$1 billion from its cash reserves into cryptocurrencies (BTC, ETH, BNB).
• The investment is to be phased and limited initially to Bitcoin, Ethereum, and BNB under oversight by a new crypto risk committee.
• The move is highly aggressive relative to Jiuzi’s recent financials (low cash reserves, past net losses), drawing both enthusiasm and skepticism.
• Jiuzi’s strategy reflects a broader global trend of corporations adopting cryptocurrency holdings in treasury management.
• However, new data suggests some cooling in aggressive corporate crypto accumulation, with more cautious, measured allocations.
• Key risks include volatility, valuation mismatches between token holdings and market cap, and regulatory or accounting challenges.
• For crypto-seeking investors or blockchain practitioners, such corporate moves may open opportunities in infrastructure, custody, treasury tooling, and risk-management layers.

Introduction

In a move that surprises many in the EV infrastructure world, Jiuzi Holdings, a Nasdaq-listed Chinese EV charging company, has approved a bold pivot: allocating up to US$1 billion of its cash reserves into cryptocurrencies. While the press coverage emphasized Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB) as the initial focus, this decision signals ambition far beyond mere short-term speculation. For readers exploring emerging crypto projects or possible adoption drivers, Jiuzi’s shift offers insight into how real-economy firms may begin weaving digital assets into corporate treasury strategies.

Below, I first summarize the announced plan, then examine Jiuzi’s rationale and risks, and finally situate the decision within the evolving landscape of corporate crypto adoption.

Jiuzi’s Crypto Treasury Strategy

Approving a US$1 B Crypto Mandate

As of September 24–25, 2025, Jiuzi’s board officially approved a Crypto Asset Investment Policy allowing up to US$1 billion to be allocated from its cash reserves toward selected digital assets. The policy was announced just after the appointment of Dr. Doug Buerger as Chief Operating Officer, hinting at a new strategic direction under fresh leadership.

Under the approved plan:

• The initial allocation will be phased over time, not all at once.
• The investments will be limited initially to three major cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB).
• Any expansion beyond these three will require additional approval from the board’s risk committee.
• To manage custody risk and internal control, Jiuzi plans to outsource custody to external trusted custodians, avoiding self-custody of private keys.
• A crypto risk oversight committee, chaired by CFO Huijie Gao, will monitor strategy execution and report to the board.
• Significant purchases will be disclosed to stakeholders under the new policy.

The stated intention is not short-term trading or speculation, but long-term value preservation, inflation hedge, and diversification of reserves.

Why Jiuzi is Making the Shift

Jiuzi is headquartered in Hangzhou, China, focusing on deployment of EV charging infrastructure, particularly in regional and smaller cities. As the company seeks to scale amid market competition, it appears to be reimagining its treasury reserve strategy.

Key motives appear to be:

• Inflation hedge / diversification: By shifting part of its cash holdings into digital assets, Jiuzi aims to guard against fiat currency erosion and diversify beyond low-yield cash.
• Long-term capital appreciation: The leadership frames the crypto allocation not as speculative but as a long-term store-of-value play, akin to “digital gold” or strategic reserves.
• Signaling and differentiation: This move sets Jiuzi apart from many peers in infrastructure or hardware sectors. It may draw investor attention and position the company as “forward-looking.”
• Proactive capital deployment: For a company with limited cash flows, putting idle reserves to “work” may be viewed as aggressive capital allocation.

Yet, the risks are nontrivial, especially given Jiuzi’s recent financial posture.

Financial Realities and Market Skepticism

At first blush, the scale of the US$1 billion plan is audacious compared to Jiuzi’s known financials. A prior press version of the article you referred to indicated that as of late 2024, Jiuzi had only US$943,000 (0.94 million) in cash and equivalents, and had registered a net loss of US$55 million. That mismatch raises concerns about the practicability of executing this plan internally. (Your article’s data likely reflect earlier estimates.)

Because of this, analysts and market participants question where Jiuzi would source the funding — for instance, from debt issuance, equity dilution, asset sales, or external capital injection. The stock reaction was dramatic: premarket trading spiked ( reportedly +55.5 %) but then volatility ensued.

Another point of concern is the governance of valuations: when a firm holds volatile assets like BTC or ETH, market value fluctuations feed directly into its financial statements (especially under fair-value accounting). That can lead to swings in earnings, write-downs, and investor distrust.

Finally, the uniqueness of Jiuzi’s core operations (EV charging) means this is not a natural crypto-native business. The execution risk, regulatory compliance, accounting practices, and technological integration all must be navigated carefully.

The Broader Trend of Corporate Crypto Treasuries

Jiuzi is not acting in a vacuum. Over recent years, a wave of firms has adopted cryptocurrency allocations in treasury or transformed into “Bitcoin treasury companies.” This phenomenon has both momentum and cracks in it—and Jiuzi’s move must be seen in that broader evolution.

Corporate Crypto Holdings: Current Landscape

• According to BitcoinTreasuries.net, as of now, publicly traded companies collectively hold over 1,032,813 BTC in treasury reserves.
• A recent analysis by Fidelity estimated that, as of June 30, 2025, public companies holding 1,000 or more BTC represent 97% of total public company BTC holdings, concentrated in around 30 firms.
• In 2025, institutional holdings of Bitcoin have surged, with some reporting over US$110 billion of institutional capital allocated to BTC in Q3.
• However, a cautionary countercurrent: demand from corporations appears to be slowing, with newer acquisitions becoming more measured. CryptoNews notes that some firms now break up purchases into smaller tranches, reflecting macro uncertainty and more conservative allocation.
• Michael Saylor (of Strategy/MicroStrategy fame) has recently observed that corporate and ETF demand for Bitcoin now exceeds new miner issuance, contributing to a supply squeeze.

Thus, we are in a phase where aggregate holdings are high, but the baseline rate of fresh accumulation may be moderating.

[Historical Trend of Aggregate Corporate BTC Holdings over Time]

show the upward trajectory of corporate Bitcoin holdings over time.

Case Studies & High-Profile Moves

• Strategy (formerly MicroStrategy) remains the flagship example. In 2025 alone, it acquired additional BTC (over 4,000 between May 19–25) and now holds hundreds of thousands of coins worth tens of billions.
• Strategy recently reported its fifth consecutive quarterly loss, largely due to unrealized losses on its crypto holdings, yet it continues to issue equity and debt to fund further purchases.
• The recent acquisition move by Strive, a Bitcoin-focused vehicle, of health-tech firm Semler, included a plan to purchase 5,816 BTC for US$675 million—boosting combined holdings above 10,900 BTC.
• Reports in the Financial Times suggest that a number of companies adopting crypto treasury strategies are resorting to stock buybacks after their share prices tumble below implied token holdings. That raises questions about sustainability of the model.
• FT also analyzed how such “bitcoin treasury shells” complicate merger dynamics: valuations become disconnected from real business operations, creating both arbitrage opportunities and risk.
• In Japan, Metaplanet, a hotel operator turned bitcoin treasury company, announced a plan to raise US$5.4 billion to acquire up to 210,000 BTC by end-2027, shifting its core business identity.

These cases illustrate the dramatic swings, ambitious capital raises, and risk/reward tension inherent in the corporate crypto treasuries space.

Challenges and Strategic Friction

While headlines focus on bold moves, the underlying challenges are significant:

1. Volatility and Value Mark Risk
   Crypto markets remain volatile, which can lead to large mark-to-market gains or losses. Corporate financials can become unpredictable as a result.
2. Valuation Disconnects & Market Pricing
   Some firms trade at valuations far above or below the value of crypto holdings, leading to distortions. Arbitrageurs may exploit such gaps during M&A or share swaps.
3. Accounting & Regulatory Uncertainty
   Fair-value accounting standards, impairment rules, tax treatment, and regulatory scrutiny vary across jurisdictions and are still evolving for crypto assets.
4. Liquidity & Capital Constraints
   Not every company has sufficient free cash or borrowing capacity to fund large allocations. As seen in Jiuzi’s case, where its recent cash position is minimal, execution may require external financing or dilution.
5. Sustainability of the Model
   Some early adopters are now scrambling to prop valuations (e.g. via buybacks) or scaling back crypto exposure. ft.com
   Others believe that the ability to exploit volatility via leverage (e.g. issuing convertible bonds or yield strategies) may diminish as markets mature and volatility compresses.
6. Strategic Distraction
   Firms whose core operations are far from crypto must manage the tension between their legacy business and speculative treasury reserve management.

Implications for Crypto Seekers & Blockchain Builders

For readers searching for new crypto opportunities or viable use cases, the expansion of corporate crypto treasuries may create fertile ground in several areas:

• Institutional custody & treasury infrastructure
  Firms will need secure, auditable custody services, multi-sig architectures, key management tooling, and compliance layers.
• Risk management and hedging products
  As volatility becomes a corporate exposure, hedging instruments (options, futures, structured derivatives) will be in demand.
• On-chain transparency and audit tooling
  Investors may demand verifiable linking between corporate disclosures and on-chain addresses; infrastructure to prove holdings may be necessary.
• Token selection and collateral innovation
  While currently major tokens dominate, if more firms adopt a diversified basket strategy, new token primitives (e.g. liquid staking derivatives, yield-bearing tokens) may rise.
• Advisory, compliance, and consulting services
  Companies entering crypto require advisory companions to navigate regulation, auditing, taxation, and internal controls.
• M&A structuring over “treasury shells”
  Deals combining firms with disparate treasury holdings may spawn novel financial engineering or arbitrage models.

Risks & Strategic Considerations for Jiuzi

While Jiuzi’s plan is bold, its success depends on navigating multiple variables:

• Funding Source & Execution Feasibility
  Jiuzi must clarify how it will raise or reallocate capital to fund the crypto allocation, given its recently weak cash reserve.
• Staged Deployment vs. Lump-sum Exposure
  A phased, dollar-cost-averaging style approach would reduce exposure to timing risk; lump-sum moves amplify short-term volatility.
• Governance & Oversight
  The establishment of a crypto risk committee is essential, but its authority, independence, reporting lines, and decision thresholds must be credible.
• Transparency & Stakeholder Communication
  Timely disclosure and clear rationale will help investors and analysts evaluate the move. Lack of transparency may provoke regulatory or market backlash.
• Balancing Core Business Focus
  As an infrastructure business, Jiuzi must ensure its operational priorities (charging deployment, partnerships, maintenance) are not compromised by treasury speculation.
• Exit Strategy & Flexibility
  The policy should allow for scaling back or pivoting if macro conditions change or digital asset risks intensify.
• Regulatory & Accounting Compliance
  Depending on jurisdiction, crypto holdings may face unique audit, tax, or financial accounting rules (e.g. impairment recognition).

Conclusion & Outlook

The announcement that Jiuzi Holdings is allocating up to US$1 billion into crypto signals a noteworthy moment in the evolving interplay between real-sector firms and digital-asset strategies. While the strategy is fraught with execution risk, valuation pressure, and financial constraints, it also exemplifies how some companies are rethinking cash reserves in an era of macro uncertainty and digital asset maturation.

From a broader perspective, Jiuzi joins a growing cohort of corporations experimenting with crypto treasuries. Aggregate public company holdings have soared, though more recent data suggests that fresh acquisitions are being more cautiously paced. The era of runaway accumulation may be giving way to measured, sustainable deployment.

For readers and practitioners exploring the next generation of crypto projects or enterprise infrastructure, this trend offers both signal and opportunity. Custodial systems, risk frameworks, on-chain auditability, hybrid token strategies, and M&A engineering are all domains poised to benefit from deeper corporate integration of digital assets.

In short: Jiuzi’s move is not merely headline-grabbing — it is a test case. If successful, it could embolden more non-crypto firms to take the plunge. If it falters, it will underscore how challenging it is to blend traditional business with volatile treasury experimentation. Either way, the intersection of operational businesses and corporate crypto treasuries is increasingly one to watch.